Is interest calculated on balance or available balance?

DragonQ

Is interest calculated daily based on balance or available balance?

msallen

All the mind-readers have left for the day so you'll have to give people a clue, such as what account you're talking about and whether you have an o/d facility (as that would be included in available balance).

DragonQ

Hmm I assumed it was a standard thing. It's a Lloyds Vantage account with no overdraft. I'm talking about in-credit interest.

henm2

variable interest whether debit or credit is based on and calculated daily from the cleared balance.

Milarky

henm2 wrote: »

variable interest whether debit or credit is based on and calculated daily from the cleared balance.

Plus the rate earned for the month could be '0%' if either of

1) £1000+ is not credited in the month

2) The balance on the account falls below 'nil' for a single day in the same month.

'Available balance' doesn't include cheques until 4 working days after deposit (as a rule) but upto £1000 of the value of any check does earn interest from (and including) the date of its deposit. Individual cheques over £1000 in value - which can't be split across several vantage accounts (I've asked) - earn interest on the first £1000 for days 'one' and 'two' and earn interest on the full amount from day 'three'.

N.B. Other Lloyds customer personal cheques paid in are cleared immediately, so are effectively 'cash' for interest earning and withdrawal purposes.

Some examples:

Balance of £3000, deposit cheque of £1000. Earn interest on £4000

Balance £3500, cheque £1500. Earn interest on £4500 D1, D2 £5000 D3

Balance £3500, cheque £2500. Earn interest on £4500 D1, D2 £6000 D3 (£1000 is now at 0%)

Balance £2500, cheque £2500. Earn interest on £3500 D1, D2 £5000 D3

Balance £5000, cheque £2500. Earn interest on £5000 D1, D2 £5000 D3 (So withdraw £2500 to another a/c on D1)

DragonQ

I do not use cheques. What about when a card payment is made? The "available balance" drops immediately but it usually takes a day or two to go through.

System

The amount will continue to accrue interest until it's actually debited.

DragonQ wrote: »

I do not use cheques. What about when a card payment is made? The "available balance" drops immediately but it usually takes a day or two to go through.

DragonQ

Heng_Leng wrote: »

The amount will continue to accrue interest until it's actually debited.

Thank you.